Convergence in a two-sector nonscale growth model

Much of the convergence debate has focused solely on output. Recent empiric al evidence suggests that crucial inputs, such as technology and capital, m ay exhibit markedly distinct convergence patterns. We examine the convergen ce characteristics of a two-sector nonscale model of growth that features p opulation growth and endogenous technology. The model replicates key econom ic ratios and speeds of convergence with relative ease. Most important, how ever, is that capital and technology differ strikingly in their convergence paths and speeds. The nonconstancy of the convergence rates and the nonpro portionality of the endogenous variables during transition suggests further refinements for the empirical tests of convergence.